Aug 01, 2013

Mortgage interest rates got uglier and uglier during the month of June.  As I mentioned in last month's report, there just wasn't much support for rates to have risen so dramatically in such a short period of time, but they did.

As June drew to a close, interest rates had climbed almost a full percentage point from where they were the beginning of the month (see chart below). The rapid rise in rates is the fastest jump on record in decades.  The 30-year FHA mortgage interest rate officially hit the 4.5% mark, since way back in 2011.

With the first day of July 2013 upon us, interest rates have already begun to reel back and settle down.  The 30 year rate has dropped about 1/4 of a percent since last week, and now sits at 4.25%.  The remainder of this first week being a holiday week for the 4th of July holiday, the markets ought to be pretty uneventful.  That said, if
you've got a house purchase moving along right now, don't count on rates remaining stable.

Given the volatility of the financial markets in recent weeks, buyers can't afford to take any unnecessary risks.  Don't gamble.  Always be prepared to lock your rate at time of contract. That's my best advice for all home shoppers throughout the month of July, 2013.

Till next month,

Interest Rates As Of July 1, 2013

6-month trends graph - as of July 1st, 2013

 

 

 

 

Interest Rate Advice

Although there's a lot of reasons for interest rates to remain stable throughout this calendar year, the long term expectation is for interest rates to rise. Don't take these low rates for granted. If you're financing a home right now, my best advice is to "lock-in" these low rates, rather than gamble that they'll be lower as you get closer to your closing date. Better be safe, than sorry!

If you're in the market for a home this year, allow us to help you find the right lender and loan program, and help you take advantage of these great low interest rates. Today’s interest rates are quite a bargain!